One of the biggest reasons why people invest in real estate is the steady appreciation in property rates. Even for home buyers, price appreciation is an important aspect, representing an increase in value.
So what leads to a rise in property prices? We list out the factors:
Condition of the Property
The condition of a property is another prime factor that determines the resale value of the property. A property that does not look well taken care of will reduce buyers' confidence in the said property. By keeping your property well-maintained, you will keep its value high.
Inflation happens when there is an excessive amount of money in circulation in the economy. This over-abundance of money causes prices to go up for a number of things including land, building, construction materials and more.
However, inflation cannot be the sole cause of rising property prices in an area if the area has poor connectivity, poor infrastructure or an oversupply of real estate projects.
When the infrastructure in an area improves, the value of properties in the locality will appreciate. This explains why your home's value increases if the roads in the area are widened or constructed, a bridge or flyover is built, the connectivity of the area improves, a new retail shop, hospital or school comes up or any other positive change takes place in terms of infrastructure.
The quality of construction of the property is also very important. The construction materials, design, layout, architecture and the durability of the building all add to the valuation of a property. Therefore, it is advisable to buy a property from a renowned builder.
By future prospects, we mean the new infrastructural developments that will take place in the area in future. If a new project is coming up in that area, it means that the price of lands or properties in that area could increase.
If you're looking to invest in a fast-appreciating property in Bangalore, consider Salapuria Sattva Divinity - a residential project comprising of 1, 2 & 3 BHK apartments on Mysore Road.
It enjoys proximity to proposed IT corridor, NICE corridor, Ring road, hospitals, shopping complexes, reputed schools and much more, thus promising you high returns on your investment.
Explore the Project http://www.sattvagroup.in/pages/projects/residential/divinity/overview.html